The increased attention that financing banks, but also investors and real estate owners pay to concise and complete reports on construction, the impact of buildings on the built environment, buying or selling real estate has led to an increase in requests for consultancy services related to project monitoring activities and conducting technical due diligence and commissioning reports.
With 15 years of experience in the market, Colliers has provided such services for 3.4 million square meters of space, of which approximately 2 million square meters are in monitoring projects.
With a portfolio of clients ranging from investors, financial institutions to landlords and tenants, Colliers’ Building Surveying division makes construction monitoring reports for financing banks, technical due diligence reports for investors or financial institutions, but also commissioning reports to meet the commissioning requirements of the green LEED and BREEAM certification processes.
Real estate development monitoring is a service requested in particular by lending banks for the verification and confirmation of works performed by real estate developers and the confirmation and verification of requests for withdrawals from the approved loan. Basically, the financing banks’ approvals for withdrawal are made following the monitoring reports executed by Colliers specialists, which confirm, among many technical and financial aspects, the concordance between the estimates of construction works and the builders’ invoices for the works performed.
“During the 15 years of activity in the Building Surveying segment, Colliers was an important “bearing” in the whole mechanism of real estate developments in which we were involved and for which our services were requested. Thus, by making monitoring reports, we had an impact in the delivery on the market of 18 industrial halls, 16 office buildings, 15 residential buildings, 5 shopping centers and 2 hotels, totaling approximately 2 million square meters “, explains Oana Stamatin (photo), Director of Green Certifications and Building Surveying at Colliers.
At the same time, the same department dealt with technical due diligence services and technical audit reports for 4 hotels, 13 industrial parks, 17 office buildings, 7 portfolios of retail spaces (shopping centers, street spaces, hypermarkets), which cumulate an area of about 1.4 million square meters. This type of property services provides a realistic picture of the state of construction from a technical point of view, but also a clear estimate of the repairs that need to be made to comply with the initial design and quality standards.
In the last year, the interest coming from financing banks for industrial, residential and strip-mall developments has increased, Colliers consultants note.
“The Building Surveying market mirrors the trend in the local real estate market. If more industrial, residential or retail (strip-mall) is built this year, such developments are financed or bought, so we also make reports for such developments. Currently, we work for eight project monitoring and technical audit clients and three commissioning clients”, concludes Oana Stamatin.
Among companies for which Colliers has offered such services over time are the real estate developer CTP, but also banks such as BRD Groupe Société Générale or Banca Transilvania.